Mortgage Market Update

July 29, 2009 · Posted in News For Homebuyers

This is going to be a very brief update for a couple of reasons:

It’s a summer Friday and not a lot is happening.
The markets are basically treading water today.
The only “news” is that consumers aren’t very confident.

My recommendation remains to lock all loans. The downside potential of lower rates is vastly outweighed by the potential of higher rates due to perceived inflation risk going forward, the amount of money the government is borrowing, and the additional risk perceived in mortgage backed securities due to increasing defaults.

I’ll have more with my mortgage market week in review later today. If you’d like to know what an “Exit Strategy” is and why it’s important to the housing market, check out what I wrote up yesterday at “Exit Strategy and the Housing Market.”